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Phillip has an investment of $200 that is expected to earn 10% annually. How much will the investment be worth at the end of the second year if the investment earns interest compounded annually

Respuesta :

After two years, the investment would be worth $242.

What does compound interest mean?

When interest is compounded, both the principal amount and the interest already accrued earns interest.

What is the value of the investment?

The formula that can be used to determine the value of the investment is:

FV = P (1 + r)^nm

Where:

  • FV = Future value
  • P = Present value
  • R = interest rate
  • m = number of compounding
  • N = number of years
  • $200(1.1)^2 =
  • $242
  • To learn more about
  • compound interest
  • , please check: https://brainly.com/question/18760477

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